According to Bao Viet Securities Joint Stock Company (BVSC)’s report, last week (March 11-15), the State Bank of Vietnam (SBV) net withdrew 6.374 trillion dong via Open Market Operation (OMO). Specifically, there were 13.961 trillion dong attracted while there were 7.588 trillion dong newly pumped. SBV also issued bills for the first time with 17 trillion dong, seven-day term with three percent interest rate after four months of no activity on this channel.
Therefore, together with two OMO channels and treasury bills, SBV net withdrew 23.373 trillion dong last week. Up to now, the total amount of OMO and treasury bills is circulating at 24.587 trillion dong, lower than the average level of recent months.
Cumulatively since the beginning of 2019, SBV has net withdrew 64.82 trillion dong. Cumulative net absorbing trend continued to be maintained for the fifth week in a row.
Notably, SBV’s net absorbing move in the past week had a “role change” between OMO and treasury bills. This role change was assessed when the OMO was circulating to a low level (7.588 trillion dong), the net withdrawal via OMO could not be used much more. Therefore, SBV returned to issue bills to continue net withdrawal.
In the interbank market, interest rates continued to decline. Specifically, overnight, one week and two week terms decreased respectively from 3.95 percent; 3.8 percent and 4 percent to 3.55 percent; 3.45 percent and 3.65 percent.
“According to our observations, the banking system liquidity is still relatively positive, reflected through the continuous net withdrawal of SBV in recent weeks. The downward trend of interbank interest rates will remain strong in the coming weeks and decrease to an average of three percent per year for all terms “, BVSC said.
